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economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged … a small amount of debt reduction has been achieved through growth rates that exceed undistorted interest rates …
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Most governments are mandated to maintain their economies at full employment. We propose that the best marker of full employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of labor--both jobseeking and recruiting. The...
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